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1. Bond X is a one-year zero with face value of 100 trading at $95 and Bond Y is a two-year zero with a face

1. Bond X is a one-year zero with face value of 100 trading at $95 and Bond Y is a two-year zero with a face value of 100 trading at $88. Explain how the forward rate on a one-year bond purchased one year from now can be attained by a locking-in strategy.

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